Jay Shree Tea To Acquire A Co. In Agro Commodity Space For Rs 120 Cr

Jay Shree Tea & Industries Ltd is acquiring a company in the agro – commodity space for about Rs 120 Cr. The company has not disclosed the name of the target; however, there are rumors that it is buying a Bihar based unlisted sugar company.

Jay Shree Tea – BK Birla Group Company – is engaged in the manufacturing and sale of tea, chemicals and fertilizers. Jay Shree produces 21.80 Mtpa of tea. It has 21 tea estates.

Transaction Reference: ET

Jay Shree has recently entered into a lease agreement with state-owned Assam Tea Corp to manage two of its tea estates — Longai and Ishabheel — which collectively produce 6 lakh kg of black tea annually. Jay Shree might end up buying these tea estates, as it had followed a similar strategy earlier as well. It entered into a management agreement with Darjeeling Consolidated Tea Co for their tea estates in Darjeeling and later bought it out.

Jay Shree has been looking for overseas acquisitions for quite some time now. Last Year, JayShree Tea acquired Jayantika Tea Co Ltd. It has also entered into a JV with Rwandan firm to acquire tea plantations in Africa.

For the quarter ended Dec’09, the company's net profit rose 12.58 times to Rs 33.2 Cr from Rs 2.640 Cr in the same quarter last year. Net sales for the quarter declined marginally 3.38% to Rs141.9 Cr compared to Rs 146.91 Cr for the same quarter a year ago, while total income for the quarter fell marginally 1.13% to Rs 144.39 Cr, when compared with the prior year period.

Sugar Mills in Bihar

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August 23, 2010 05:22 PM

presently i am posted as tea Estate manager Cherideo TE in Assam, with 28 yrs experience in Tea-field managt,producti on - Posted by Mofid rasul Recommended by 0 Readers